Brian Leavitt, REALTOR®

How to Avoid Scams This Holiday Season

 Anyone can be the victim of a scam. However, there are several common sense ways to prevent being swindled:

• Beware of pop-up ads online. While these ads may promise big savings, you’ll only receive steep monthly charges.
• Your bank will never send you an email to verify your account or social security number. These email schemes are common and can look quite convincing. However, if you receive such an email, report it to your bank immediately.
• Shred your paper statement. If you choose to receive paper statements in the mail, make sure you shred them when you’re finished.
• Don’t do any financial transactions on a public computer. This includes everything from checking your statements to shopping online.
• If you plan to shop online, purchase the latest antivirus and antispyware software and make sure you update it regularly.

Beware of these debit card scams
Many of the latest scams involve stealing information from debit cards. Common ways to steal or copy information from your debit card include:

•  Card theft: The thief uses a special device that makes it appear as if your bank card is stuck in the machine. After you leave, they steal your card.
• Double swipe: The thief, a staff member of the store or restaurant, swipes your card through a hidden device that duplicates the magnetic information.
•  Copycat technology: The thief inserts a tiny device into the card reader of a cash machine or gas station to record your card and PIN data.
•  Faux Machines: Thieves set up a phony ATM machine that records your card and PIN information and makes a duplicate card.

Unlike credit cards, where you’re only responsible for $50 if it’s lost or stolen, you may be held responsible for the unauthorized charges if you do not notify your bank within two business days. Sign up for online ranking and review your account balances daily for unauthorized charges.

Score Top Deals This Holiday Season

Here are some tips to help you take advantage of the significant discounts the season has to offer. This holiday season is right around the corner and you know what that means: Black Friday. While many people brave the crowds before dawn to capitalize on big savings from major retailers, others sleep in and surf the internet for similar deals. Whatever your strategy, this month's information will help you prepare for the holiday shopping season. The first page offers tips and tricks to help you score deals on gifts for everyone on your list. Page two provides valuable information about how to avoid scams and protect your credit and debit card information both in the store and online.

• Make a list. Create a shopping list of items you hope to purchase on Black Friday, whether for you or the people on your holiday list, and stick to it.
• Do your homework. Use a pricing search engine, such as http://milo.com, to find store deals in your area and to ensure that the product you want is in stock.
• Compare sales. Go to http://pricegrabber.com to compare sale prices at different retailers and find the best deal.
• Get sale information early. To get the inside scoop on Black Friday sales, join the email lists of your favorite retailers. Many companies send emails leading up to the sale to advertise deals and provide exclusive discount codes and maps featuring sale items.
• Avoid the crowds and go online instead. Many major retailers, including Macy’s,Kohl’s and Wal-Mart, offer the same bargains online as they do in their stores. Check the retailers’ websites to find out when the deals will be available.
• Score big on Cyber Monday, the biggest online shopping day of the year, with exclusive online discounts the Monday after Black Friday. Nearly 77% of online retailers send promotional emails to subscribers in the days leading up to Cyber Monday. If you're not on the email list of your favorite retailer, now is the time to join.

You won't find me out on Black Friday, but I do hope to have all my shopping done by Thanksgiving. Please share your Holiday Shopping tips in the comments section below!

Why you should pay off your mortgage before you retire

More Americans are quitting the workforce without retiring their mortgages. The most recent Federal Reserve survey shows that 32 percent of households headed by someone age 65 to 74 were carrying home-mortgage debt.

That could be a mistake. Consider this scenario. Two retired couples have income of $16,000 from Social Security and $24,000 from individual retirement accounts.

The couple without a mortgage would be taxed on their IRA withdrawals, but with the standard deductions, they would owe only about $600 a year in taxes, leaving them with $39,400 in after-tax income.

The second couple took out a $200,000 30-year mortgage at age 50 that costs $955 per month until age 80. The interest deduction doesn't help because by the 16th year of their mortgage, just $5,047 goes to interest. Added to other deductions, they will have little more than the $11,600 standard deduction taken by the first couple.

To match the first couple's standard of living, they have to make large taxable withdrawals from their IRA. The withdrawals would drive up their total income, triggering taxes on Social Security. They would need total pretax income of more than $58,000 to have the same standard of living as the first couple, and they would pay more than $4,300 in federal taxes.

To pay off a $200,000 30-year fixed-rate mortgage at 4 percent with a $955 payment: Add $100 a month to pay off the loan in 26 years. Add $200 a month to pay off the mortgage in 22 years. Add $500 a month to pay it off in 16 years.

 To calculate your own time frame and payments to see what you could do go to http://www.northstonemortgage.com/MortgagePayoffCalc.  If your rate is higher than 4% call me about the possible benefits of a refinance.

 

Sammamish Craftsman Price Just Reduced

Gorgeous traditional two story on large lot in sought after south Sammamish Plateau



4BR/2+1BA Single Family House offered at $587,750

More Photos

Year Built	1980
Sq Footage	2,420
Bedrooms	4
Bathrooms	2 full, 1 partial
Floors	2
Parking	3 Car garage
Lot Size	33,330 sqf

Gorgeous traditional two story on large lot in sought after south Sammamish Plateau neighborhood of Pine Lake Meadows. This home features 4 ample bedrooms and 2.5 baths. Formal living and dining rooms, two gas fireplaces, remodeled kitchen, new "low e" windows, marble entry and remodeled master bath. South facing deck perfect for entertaining overlooks private yard and gardens. 2 car attached garage plus large 1 car detached garage. Close to schools, walking trails and shopping.

Planing to own a home some day? Eliminate Debt

Loans
Most loan payments are calculated using compounding interest, which is the interest that is added to the principal of the loan each month that the balance is outstanding, causing you to pay interest on interest. Although it’s designed to work against you, it is possible to pay off the loan three to four times faster with minimal additional cost to you, just by knowing your “magic number.” Your “magic number” is the portion of your monthly payment that goes to pay the principal. To pay your loan off quickly, double, triple or quadruple your  principal, or “magic number” each month.

Consumers have an average of 13 credit obligations on record with a credit bureau.
Source: http://myfico.com

Credit Cards
The average credit cardholder has 3.5 cards.* If you have outstanding balances on two or more credit cards, use the rollover formula to pay them off.

• Make a larger payment on the card with the highest interest rate and pay the minimum on the rest.
• Once this card is paid off, apply the amount of its payment to the minimum amount you were paying on the card with the second highest interest rate.
• When the second card is paid off, add that amount to the payment of the third card, etc. until you have paid off all of your credit cards.

The average American with a credit file has over $16,635 in debt, excluding a mortgage.
Source: US News and World Report

Tips to Help You Stick to Your Budget

• Set 90 day goals.
• Track daily and weekly expenses to know where your money is going.
• Ask for help. Enlist a friend or loved one to help you remain accountable to your budget.
• Focus on the win! Imagine how you’ll feel when you’ve paid off your debt and have achieved financial freedom.
• Use a small portion of the surplus to reward yourself.

The Big 6 keys to buying a home now

1.  Home prices have hit bottom or are very close to it. Especially where prices have experienced big reductions in the past couple of years, there will be little change this year or next, according to national economists.

2.  Affordability is the highest in 20 years, since 1991. It's defined as the ratio of the median priced home to median family income. Economists at Fiserv Case-Shiller, which tracks home prices, say the ratio is now 2.6, down from a peak of 4.1 in mid 2005.  Renters considering homeownership  are encouraged by the current difference between rent and the median monthly mortgage payment. It fell from $745 in 2005 to $102 now. Low vacancy rates will allow landlords to raise rents next year by up to 3.5 percent.

3.   Mortgage interest rates are about as low as they can go. Recently, the national average 30-year fixed rate was 4.5 percent.  Adjustable rate mortgages are even cheaper and rates for jumbo mortgages are down as well.

4.   It's a buyer's market. With many choices, buyers can find properties in good school districts or near their jobs. And shopping takes less time.   Some investors bought properties, remodeled, but can't find buyers. They may be willing to make deals.

5.   Distressed properties and bank-owned foreclosures are good buys. Bank-owned properties sell for an average discount of 35 percent off the per-square-foot price of other homes for sale, according to Realty-Trac.  It could take three to six months to close on a short sale, but values are outstanding.

6.   Homeownership is an attractive choice. It's a financial decision but there's more to it than that. When you own your home, you control your living environment, change the home as you see fit, and create a sense of rootedness in your community, according to Kiplinger's Personal Finance.

You don't have to deal with a landlord, and with a fixed interest rate, your payment will not rise because of inflation or rent increases.